4) Do not loan funds for investing in crypto
Avoid trading in cryptocurrencies with borrowed funds. It is a popular advice in the crypto industry that you invest only what you are prepared to lose. This means taking loans from sharks or banks is not advisable as you are risking your borrowed capital in a volatile market with no guaranteed returns.
Okay let's keep the concept of loan funds aside. What do you think about margin trading? They too are form of loan funds and I have seen a lot of people taking up leverage even the good traders. Do you think that is bad for a trader too? Because as far as I know many people don't have enough capital to buy enough quantities to make a living out of trading so it would really make sense if they actually took some leverage or margin for trading but they have to follow a strict stop loss so that they don't just blow up their everything.